Dick’s Sporting Goods earnings stumble despite strong e-commerce gains
Pennsylvania-based sportswear and equipment retailer Dick’s Sporting Goods, Inc. reported a $2.6 million decrease in first-quarter net income on Wednesday, as progress in e-commerce revenues failed to kickstart the company’s overall sales.
The retailer’s total net sales for the first quarter ended May 4, 2019, increased 0.6% to approximately $1.92 billion, up from $1.91 billion in the same period in the previous year. Same-store sales were flat.
E-commerce sales increased 15%, accounting for 13% of total revenues, compared to around 11% in the first quarter of 2018.
Net income was $57.5 million, or $0.61 per diluted share, down from $60.1 million, or $0.59 per diluted share, in the prior-year period.
"We were pleased with our start to 2019, delivering higher merchandise margins and first quarter earnings per diluted share above last year. Same store sales turned positive in March and remained positive in April, as we started to see the benefits of our key strategies and investments," said Dick’s Sporting Goods Chairman and CEO Edward W. Stack in a release. "We are very enthusiastic about our business and are pleased to increase our full year earnings outlook.”
Dick’s Sporting Goods now expects its full-year earnings per diluted share to be between $3.20 and 3.40, while same-store sales are predicted to increase around 2%.
The retailer, which has been experiencing slowing sales since it tightened its gun sales policy in early 2018, announced in March that it planned to stop selling hunting rifles and ammunition altogether at 125 of its stores.
The company currently operates 857 retail locations across its Dick’s Sporting Goods, Golf Galaxy and Field & Stream banners, and expects to open a total of nine new stores over the course of fiscal 2019.
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